| A | B |
|---|
| capital | money needed to start a business |
| wants | things that are not necessary for survival but add pleasure and comfort to our lives |
| surplus | when too much of a good or service exist |
| demand | the quantity of a product or service that consumers are willing and able to pay for at a given price |
| command economy | this type of economy is run by a central government or authority |
| traditional economy | the type of economy where the people beleive in doing things the same as they have always been done in the past |
| supply | when too much of a good or service exists |
| natural resources | raw materials that are supplied by nature |
| human resources | people who work to make natual resouces availble to us in the form of a goods or services |
| mixed economy | a type of system where some businesses are owned privately and some are owned or controlled by the government |
| needs | things that are necessary for survival such as food, clothing, and shelter. |
| profit | results when a business' income is greater than its expenses |
| profit motive | the desire to make money |
| free enterprise system | the type of system where businesses are ownned by private individuals or groups, not by the goverment also known as market economy |
